The New York Times

Tuesday, October 19, 1999

Indonesia Ready To Free E. Timor

By The Associated Press

JAKARTA, Indonesia (AP) -- In President B.J. Habibie's 16 months in power, a crisis exploded in the territory of East Timor, a banking corruption scandal broke and Indonesia's huge economic problems continued.

Those issues were laid bare as Indonesia's legislature appeared ready to grant East Timor independence today and debated who they will choose to be the country's next president in a vote scheduled for Wednesday.

Outside the legislature, thousands of supporters of Habibie and his rival, Megawati Sukarnoputri, clogged the streets of Jakarta.

In a serious setback to Habibie's chances, Gen. Wiranto, the defense minister and commander of Indonesia's powerful military, failed to accept an invitation by Habibie to be his vice presidential candidate.

However, in an ambiguous speech on national television Monday night, Wiranto also said he might enter politics if the people need him.

Legislators spoke today in favor of ending Indonesia's 24-year occupation of East Timor and accepting the results of an independence referendum there six weeks ago.

East Timor's overwhelming vote for independence led to a wave of killings, looting and arson by pro-Indonesian militias there and their Indonesian military allies that only ended with the deployment of an Australian-led multinational peacekeeping force.

Lawmakers said privately that ratification of the independence vote was a mere formality and could be approved late tonight in a voice vote.

The 700 member People's Consultative Assembly also debated whether to endorse or condemn Habibie's 16-month record, a decision that could determine whether the Golkar Party holds onto him as its highly unpopular presidential candidate in Wednesday's election by the legislature.

Such a last-minute move could alter the outcome of the vote for the first elected head of state since President Suharto was driven from power in May 1998.

Habibie watched today as Golkar supported Habibie's record, and other factions rejected it.

The president introduced some basic democratic changes following the end of Suharto's authoritarian reign, but his popularity has sunk because of his close ties to Suharto and his inability to end human rights abuses and corruption.

In addition to East Timor, Habibie has been criticized for a massive bank scandal linked to his inner circle and Indonesia's huge economic problems.

Habibie, Wiranto and Jakarta's police chief issued stern warnings that they will not tolerate demonstrations that close main thoroughfares in the capital.

Twice last week, police and soldiers fired tear gas and plastic bullets to disperse large, anti-Habibie demonstrations outside parliament and in the city's business center. Dozens of people were hospitalized or arrested.

Since then, protests have been held every day at major crossings in the capital, but they have remained peaceful.

A line of riot police today kept flag-waving activists from rival political camps apart at Jakarta's main traffic circle, a focal point of demonstrations. Later, several thousand flag-waving Megawati supporters gathered there.

As many as 5,000 Habibie supporters marched from the central business district toward parliament demanding the legislature not elect Megawati, whose party won the most of seats in parliament in a June election, but failed to win a majority.

In addition to Megawati, Habibie is expected to face presidential candidate Abdurrahman Wahid, founder of the Muslim-oriented National Awakening Party.

Habibie was appointed president 16 months ago when the authoritarian Suharto, his mentor, stepped down after 32 years of iron-fisted rule in the face of a violent protest movement.

In an emotional speech Monday, Habibie urged Indonesians to let him stay in office to continue democratic reforms. ``I don't want to say goodbye. I don't want to bid farewell,'' he told several hundred soldiers and police at a national monument in central Jakarta.